Ripple's XRP eyes rally to $2.58 as whales step up buying pressure
- Ripple's XRP has seen increased buying activity among whales in the past two weeks.
- Bitwise announced a rebranding of its European XRP ETP amid speculations of a 2025 XRP ETF approval in the US.
- XRP could extend its rally to $2.58 if it overcomes the upper boundary of an ascending channel.
Ripple's XRP rallied 6% on Wednesday following increased buying pressure among whales in the past two weeks. The remittance-based token could stage a move to $2.58 amid increased institutional interest in the launch of an XRP exchange-traded fund (ETF) in the US.
XRP whales step up buying pressure, Bitwise rebrands XRP ETP in Europe
XRP's supply across its largest exchanges, Binance and Upbit, has been trending downward in the past two weeks. According to CryptoQuant's data, XRP's exchange reserve has plunged by over 500 million XRP since November 13. A decline in an asset's exchange reserve indicates that buying pressure is rising.
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XRP Exchange Reserve (Binance) | CryptoQuant
Santiment's data shows that most of this buying activity came from whales who have increased their holdings by over 700 million XRP in the same period. The increased buying activity among whales suggests growing confidence in XRP's potential to stretch its rally.
 [20.50.46, 27 Nov, 2024]-638683480957046975.png)
XRP Supply Distribution | Santiment
The remittance-based token began its uptrend after Donald Trump emerged as the winner of the US presidential election, stretching its monthly gains above 180% since then.
It's important to note, however, that investors have realized over $1.5 billion in profits along the way, as noted in a report earlier. If the profit-taking heightens as XRP rallies, it could cause potential downward pressure on its price.
Meanwhile, in a press release on Wednesday, asset manager Bitwise announced the rebranding of its Europe-based XRP ETP. Formerly called ETC Group Physical XRP, the Bitwise Physical XRP ETP is 100% physically backed and will continue trading on the German Deutsche Börse exchange.
The asset manager also confirmed that Ripple will be an investor in the newly branded XRP fund.
"Global demand for exposure to the crypto asset class has exploded in 2024, fueled by a growing interest in crypto-backed investment offerings," said Ripple Labs CEO Brad Garlinghouse in the press release. "With the U.S. regulatory environment for crypto finally becoming more clear, this trend is poised to accelerate, further driving demand for crypto ETPs, such as the Bitwise Physical XRP ETP."
XRP could rally to $2.58 if it breaks above key channel
Ripple's XRP is up 6% following $10.91 million in XRP futures liquidations in the past 24 hours, per Coinglass data. Liquidated long and short positions accounted for $3.87 million and $7.04 million, respectively.
XRP has been trading within a key channel in the past week after a recent sideways movement near the $1.35 level.
XRP/USDT 4-hour chart
A high volume move above the upper trendline resistance of this channel will see XRP surging above its three-year resistance of $1.96 to a high of $2.58. However, a move below the lower trendline of this channel could spark a 30% decline to $0.93.
The Relative Strength Index (RSI) is above its neutral level, indicating bullish momentum is prevalent in the market.
A daily candlestick close below $0.93 will invalidate the thesis.
Ripple FAQs
Ripple is a payments company that specializes in cross-border remittance. The company does this by leveraging blockchain technology. RippleNet is a network used for payments transfer created by Ripple Labs Inc. and is open to financial institutions worldwide. The company also leverages the XRP token.
XRP is the native token of the decentralized blockchain XRPLedger. The token is used by Ripple Labs to facilitate transactions on the XRPLedger, helping financial institutions transfer value in a borderless manner. XRP therefore facilitates trustless and instant payments on the XRPLedger chain, helping financial firms save on the cost of transacting worldwide.
XRPLedger is based on a distributed ledger technology and the blockchain using XRP to power transactions. The ledger is different from other blockchains as it has a built-in inflammatory protocol that helps fight spam and distributed denial-of-service (DDOS) attacks. The XRPL is maintained by a peer-to-peer network known as the global XRP Ledger community.
XRP uses the interledger standard. This is a blockchain protocol that aids payments across different networks. For instance, XRP’s blockchain can connect the ledgers of two or more banks. This effectively removes intermediaries and the need for centralization in the system. XRP acts as the native token of the XRPLedger blockchain engineered by Jed McCaleb, Arthur Britto and David Schwartz.
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